DTN Early Word Opening Livestock 05/11 08:48
11 May 2018
DTN Early Word Opening Livestock 05/11 08:48 Cattle Futures Staged for Higher Opening Live and feeder futures are likely to open moderately higher, supported by follow-buying and the possible persistance of cash premiums. Lean hog issues should also open higher Friday morning with the help of light bull spreading and constructive fundamentals. By John Harrington DTN Analyst Cattle: Steady Futures: 50-100 HR Live Equiv: $149.92 +0.07* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv: $ 77.58 +0.54** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Both cattle buyers and sellers are running out of time to find a market. Wide spreads between bids and asking prices have persisted all week (e.g., $120 vs $128 in the South), essentially preventing the development of significant trade volume. These spreads will have to somehow narrow between late morning and early afternoon. Packers are short bought on one hand and feedlot managers are nervous about large board premiums. Live and feeder futures seem set to open moderately higher based on residual buying interest and possible cash potential.